Question
ad11b19h.Ch07.10 Innocent misre misrepresentation occurs when a statement is made by one party to a contract, who didn't kr know the statement was untrue, to another party. a. True b. False O- Icon Key
Answer
4.2
(298 Votes)
Nicole
Elite · Tutor for 8 years
Answer
a
Explanation
Innocent misrepresentation is an inaccurate statement made in good faith; essentially, it happens where the maker of a statement, in the course of a contract negotiation, made a untrue statement but believed it was true when they said it. As such, it matches the definition provided in the question. Innocent misrepresentation often gives the misled party a right to rescind (i.e., cancel) the contract, and sometimes can also give the misled party a right to damages.